The Wage and Hour Division of the U.S. Department of Labor (DOL) recently issued notice increasing the minimum wage for service and construction workers doing work on federal projects. Beginning on January 1, 2024, Executive Order 14026 will raise the minimum wage for these government contract workers from $16.20 to $17.20 per hour. Government contractors in the service and construction sectors should evaluate how the minimum wage increase will affect their operations and pricing strategies when bidding on new government contracts. These new wage increases – apply to employees performing work “on or in connection with” the following types of federal contracts: Procurement contracts for construction covered by the Davis-Bacon Act. Service contracts covered by the Service Contract Act. Concessions contracts, including any concessions contracts excluded from the Service Contract Act by regulations at 29 CFR 4.133(b). Contracts in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public. GSA National’s #GovCon experts are here to assist with any questions you may have regarding the wage increase and its application to your government contract(s). Please contact our team of SCA and DBRA subject matter specialists with any questions.